Europe switches to Saudi Arabian oil as cheaper option to Russian

Saudi Arabian oil: Oil refiners throughout Europe have begun cutting their longstanding use of Russian crude in favour of Saudi grades as the world’s top exporters fight for market share. According to trading sources quoted in Reuters, majors including Exxon, Shell, Total and Eni have been filling their refineries in Western Europe and the Mediterranean over the past few months.“I’m buying less and less Russian crude for my refineries in Europe simply because Saudi barrels are looking more attractive. It is a no brainer for me as Saudi crude is just cheaper,” said one source said. The average price of Russian Urals oil over the first nine months of 2015 was $54.4 per barrel while it is believed that the Saudis are currently asking for $48-49 per barrel. The revelations are likely to increase tensions when Russia meets OPEC members in Vienna next Wednesday to discuss the crash in oil prices. Fellow non-OPEC oil producers Azerbaijan, Brazil, Colombia, Kazakhstan, Norway, Mexico and Oman have also been invited to the meeting.